Agdist corporation distributes agricultural equipment


Agdist Corporation distributes agricultural equipment. The board of directors is considering a proposal to establish a facility to manufacture an electronically controlled? "intelligent" crop sprayer invented by a professor at a local university. This crop sprayer project would require an investment of ?$12million in assets and would produce an annual? after-tax net benefit of $1.8 million over a service life of seven years. All costs and benefits are included in these figures. When the project? terminates, the net proceeds from the sale of the assets will be $1.1 million. Compute the rate of return of this project. Is this a good project at MARR equals=14?%?

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Financial Management: Agdist corporation distributes agricultural equipment
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